On 4 December, the government of India unveiled the Bharat Bond Exchange Traded Fund (ETF). In India, debt ETFs must have at least eight issuers and no single issuer can account for a weight greater than 15% (read more about the debt ETF structure in India.) The three-year Bharat Bond ETF will hold the debt of 13 public sector companies like National Highways Authority of India (NHAI), Indian Railway Finance Corporation (IRFC) and Power Grid Corporation of India. Another big advantage is the maturity structure, which lets you lock-in yields if you hold the ETF to maturity. Edelweiss AMC has engaged market makers (entities which buy and sell ETF units for a small profit) to ensure adequate liquidity.
Source: Mint December 09, 2019 00:33 UTC